Ohio Property Tax Law Changes: What Property Owners Need to Know
Ohio property tax law changed significantly in July 2022 when the state passed House Bill 126. This new Ohio property tax law created restrictions on how school districts can increase property values, which affects how property tax disputes work across the state. If you own commercial or residential property in Ohio, these changes may impact your ability to challenge your assessment or defend against valuation increases. This article explains what changed and what it means for property owners.
This article is based on analysis that originally appeared in the Cleveland Metro Bar Association publication in September 2023, adapted for property owners.
How Ohio Property Tax Law Changed in 2022
Ohio property tax reform through H.B. 126 made significant changes to how property tax disputes work in the state.
Before this law, your county auditor would set a value for your property, and you could file a complaint if you thought that value was too high. Your complaint would go to the county board of revision, which would decide if your property value should be lowered. School districts could also participate in these disputes because they receive most of their funding from property taxes.
The new law restricted when school districts can file complaints to increase property values. Now, school districts can only seek an increase if it is based on a sale that happened before the tax lien date, the increase is at least $500,000, and it is at least 10% higher than the county auditor’s current value. The law also eliminated the school district’s ability to appeal board of revision decisions to the state Board of Tax Appeals.
Why This Ohio Property Tax Law Matters to You
These restrictions were intended to make it harder for school districts to challenge property values and increase tax bills for property owners.
However, the law has created confusion and legal challenges that are still being resolved. Some school districts have found ways around the new restrictions by having third parties file complaints on their behalf. Other school districts continue to file appeals even though the law says they cannot, hoping the law will be found unconstitutional.
Courts across Ohio are divided on how to apply the new law, especially for cases that were already in progress when the law took effect. Some courts have said the law applies to all cases filed after July 2022, while others have said it only applies to new cases filed after that date.
What the New Ohio Property Tax Law Means for Owners
If you own property in Ohio, especially commercial property, these changes may affect you in several ways.
First, school districts may be less aggressive about seeking increases in your property value, which could mean fewer surprise tax increases. However, school districts are still finding ways to challenge property values, and the legal uncertainty means you may face disputes that take longer to resolve.
Second, if you want to challenge your property assessment, the process remains available to you. Property owners can still file complaints with the board of revision if they believe their property is overvalued. Understanding the new Ohio property tax reform is important if you are planning to file a complaint or if you receive notice that your property value is being challenged.
Third, because courts are still interpreting the new law, the outcome of property tax disputes may be less predictable than in the past. This makes it more important to have experienced guidance when dealing with property tax challenges.
Important Deadlines
Ohio property owners must file complaints challenging their property tax assessments by March 31 following the year in which the property was last updated or reappraised. Missing this deadline means you lose your right to challenge the valuation for that year.
If you receive notice that a school district or another party is seeking to increase your property value, you have the right to defend your current assessment. The sooner you respond, the better your chances of protecting your property value.
Getting Help with Property Tax Issues
The changes under H.B. 126 have made Ohio’s property tax system more complicated, not simpler. Legal challenges are ongoing, and it may take time before courts provide clear guidance on how the law should work.
If you believe your property is overvalued, if you receive notice of a valuation increase, or if you have questions about how these changes affect your property, consulting with a property tax attorney can help you understand your options and protect your interests.
Property tax appeals require understanding the law, preparing evidence to support your case, and meeting strict deadlines. Professional guidance can make the difference between a successful appeal and an increased tax bill.
Are you a legal or tax professional? Read the technical version of this article written for practitioners.
About the Author
Robert “Kip” Danzinger is a property tax attorney based in Cleveland, Ohio. The attorneys at Sleggs, Danzinger & Gill, Co., LPA have over 100 combined years of real estate tax law experience and have been reducing real property tax assessments throughout Ohio and across the United States as a team since 2005.